The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1887-11-09


bill relating to the number OF the Justices
Of the Supreme Court. The present gu
preme Court as now constituted consists oil
five Judges, and the Constitution provides
that there shall not be less than three.
From information obtained, this mem
Der of the committee is satisfied that the
work can be satisfactorily and quickly dlS-
posed of by three Judges, but as there Is
a contemplated and radical change to be
made IN the workings of the whole OF the
Judiciary system, and a bill to that effect
Is being drafted, and Will In all probaplllty
be presented at the next regular session Oh
the Assembly, the present bill was intro
duced in order that such bill could be
drafted and ready for the next session.
and that in the meantime should any
other vacancy occur, that appointments
need not be made to fill such vacancy and
the vacancy now existing
therefore recommend that the bill pass
Respectfully submitted,
CECIL BROWN.
On motion of Noble Castle the two re-
ports were accepted and made special
order to be considered at O'Clock in the
afternoon in Committee of the Whole.
THE ENGLISH LOAN.
Minister Green presented the following
statement, which was read to the House
by Minister Brown:
To the Hon. S. q. Wilder, President OF
the House of Mobiles and Representatives
in Legislature assembled-Slr: In accord
ance with a resolution that the Minister of
Finance inform this Assembly in writing
of the present status of the sO-called Eng
lish Loan, the amount of bonds sold i'll the
English market, the charges or commits
siOns attending such sale in detail whether
or not the bonds comply with the statute
authorizing their issuance, and further
that the policy of His Majesty's Govern
ment in the matter be fully explained, and
whether it is the intention of the Govern
ment to introduce an Act for legislation in
the premises. | have the honor to report
that The amount of bonds sold in Lon
don and agreed to be delivered to the sub
scribers thereto was f200, 900, for which
they paid at the rate of 998 for each t1OO
of bonds netting the sum OF f196,OOO at
the disposal of the Hawaiian Government
or their financial agents. The said agents
have paid charges out of the above pro-
ceeds as follows: 5per cent commission
on 5000 900, or 100000, to the syndicate
which it was agreed and understood should
float the loan; in other words, which
guaranteed that all the bonds should be
sold at not less than 90, as allowed by law
They have also paid to certain London
firms the sum of 915,O00 as expenses of
floating loan, etc, which payment has
never been allowed by the late or the pres
ent Government, and to which l shall re-
fer again.
They also authorized the payment of the
first six months interest on the bonds,
amounting to $4,000, against which, how
ever, l have now received a credit note for
97O4 IS. 3D., being interest allowed by
Messrs MathesOn & Co. (the issuing house,
on sums received by them at the Bank of
England rate. This rate, which was 81
per cent per annum, in December, gradu-
ally declined until April, May and June of
this year, when it was as low as q and 1
per cent per annum.
Up to July 9th last no account of the
above mentioned 915,C09 had been re-
ceived by this Government; indeed, no
such amount as 915,O 900 had been men
toned in all the correspondence from Mr.
H L. Armstrong, the financial agent of
this Government, although that gentle
man had forwarded to the late Minister of
Finance a cable message, dated London,
December 9Th, as follows: "Have author
lied MathesOns to pay proportional ex-
penses out of first issue in termSof bond
Please cable confirmation. Armstrong"
He also wrote to the same effect on De-
cember 30th, saying: "In the meantime
have paid the expenses of the issue-print-
ing, advertising, brokerage and issuing
which amount to a sum larger than [ had
anticipated, but we'll within the proportion
of the expenses as provided in the Act
authorizing the national loan"
No reply was given by the late Govern
ment to the cable message or to this part
of Mr.. Armstrong; letter. There was
some ground for this, as it would have been
impossible for any one holding the inter
probation of the Loan Act universally held
here, to know what was meant or what
sum had been paid that required confma-
ton from this Government. On July 9th
l received through Messrs. G. w. Macfar-
lane & Co., with the first set of bonds, an
unsigned memorandum dated Honolulu,
July 9th, which professed to account for
the 1886, 900 received from the subscribers
for bonds in London, and by which, for the
first time, this Government became aware
that they had been charged f15, 600 "Ex-
penses of floating Loan-part of 100000
authorized by Loan Act" and in addition
to the 10000, or the commission of 5 per
cent to the syndicate. 1t would appear
hat this Els 900 was intended to represent
three-quarters of the 500, 900 which the
amended Loan Act of October 10, 1886, APP
propriates for expenses of floating loan,
etc., and which our financial agents
interpreted as being an allowance
for expenses. distinct from the
per cent commission, Mr. H R.